Civil Procedure - #40

PADERANGA V. HON. BUISSAN (1993)

Doctrine: The nature of the action, whether such is real or personal, determines the
proper venue.

Facts:
Paderanga and Elumba Industries Company entered into an oral contract of lease
for the use of a commercial space within a building owned by Paderanga in
Ozamiz City.The lease was for an indefinite period, the rent being paid on a
month-to-month basis. Elumba utilized the area under lease as the Sales Office
of Allied Air Freight in Ozamiz City.
Paderanga subdivided the leased premises into two (2) by constructing a
partition wall in between. He then took possession of the other half.
Elumba instituted an action for damages and also prayed for the fixing of the
period of lease at 5 years, before the then CFI of Zamboanga del Norte based in
Dipolog City.
Paderanga moved to dismiss contending that such is a real action and should
therefore be filed with the CFI of Misamis Occidental in Ozamiz City where
the property is located.
The judge (Hon. Buissan) denied the Motion to Dismiss. According to him, the
action only involves the enforcement of a contract of lease and ownership is not
in issue; hence, venue was proper.
Paderanga filed an MR, contending that recovery of possession is involved.
The MR was denied.
ELUMBA: The action is mainly for damages, and the recovery of possession is
merely incidental. Also, the action is one in personam and not in rem; thus,
venue may be laid where the plaintiff or the defendant resides at the option of
the plaintiff.

Issue/s: WON the venue was proper

Held/Ratio:
NO.
The nature of the action, whether such is real or personal, determines the proper
venue.
While the instant action is for damages arising from alleged breach of the lease
contract, it likewise prays for the fixing of the period of lease at 5 years. If found
meritorious, Elumba will be entitled to remain not only as lessee for another 5
years, but also to the recovery of the portion earlier taken from him as well. This
 is because the leased premises under the original contract was the whole
commercial space itself and not just the subdivided portion thereof.
o Recovery of possession is the necessary consequence of the
success of the action.
Where the ultimate purpose of an action involves title to or seeks recovery of
possession, partition or condemnation of, or foreclosure of mortgage on, real
property, such an action must be deemed a real action and must be
commenced and tried in the province where the property or any part
thereof lies.

The branch of the Regional Trial Court of Dipolog City where case may be
presently assigned is DIRECTED to DISMISS the case for improper venue.

OBITER:
The action instituted by private respondent against petitioner affects the parties
alone, not the whole world. Hence, it is an action in personam, i.e., any
judgment therein is binding only upon the parties properly impleaded.
Hernandez v. Rural Bank of Lucena, Inc.
o In a personal action, the plaintiff seeks the recovery of personal property,
the enforcement of a contract or the recovery of damages. In a real
action, the plaintiff seeks the recovery of real property, or, as indicated in
section 2(a) of Rule 4, a real action is an action affecting title to real
property or for the recovery of possession, or for partition or
condemnation of, or foreclosure of a mortgage on, real property.
o An action in personam is an action against a person on the basis of his
personal liability, while an action in rem is an action against the thing
itself, instead of against the person. Hence, a real action may at the same
time be an action in personam and not necessarily an action in rem.

Digested by: ROE (A2015)